Go-Ahead Group PLC
19 May 2000
THE GO-AHEAD GROUP PLC
WITHDRAWAL FROM JOINT VENTURES
IN RAILWAYS IN SWEDEN
The group's interim statement published in February drew
attention to unexpected difficulties in starting up the
Citypendeln commuter rail business in Stockholm. Citypendeln
AB is the joint venture company owned by VIA-GTI, BK-Tag and
Go-Ahead in which Go-Ahead has a 39% stake. Discussions with
the Swedish authorities have failed to provide a basis for
continuing the Citypendeln contract which would be
satisfactory to Go-Ahead. Consequently, Go-Ahead has agreed to
terminate its involvement in the project by transferring its
interest to the majority partner, VIA-GTI.
In addition, it has been found impossible to continue the rail
joint venture in western Sweden in which Go-Ahead has a 29%
stake. Together with partners VIA-GTI and BK-Tag, Go-Ahead has
shut down the Sydvasten AB joint venture.
The total cost of the group's involvement in the joint
ventures in Sweden, including exceptional items, is
anticipated not to exceed £4.5 million.
The withdrawal will enable the group to concentrate its rail
strategy in developing its UK rail franchises.
Preliminary results for the year ending 1 July 2000 will be
announced in September. With the exception of the Swedish
joint ventures, trading has been in line with the Board's
expectations as outlined at the time of the interim statement.
For further information please contact:
Go-Ahead Group plc
Martin Ballinger Today: 01293 516865
Chris Moyes Thereafter: 0191 232 3123
Richard Hews 0171 253 2252